ENTREPRENEURIAL FINANCE
DEBT FINANCING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Who offers equity financing
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Investors
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Lenders
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Stockholders
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Criminals
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Explanation:
Detailed explanation-1: -They usually demand a noteworthy share of ownership in a business for their financial investment, resources, and connections.
Detailed explanation-2: -When companies sell shares to investors to raise capital, it is called equity financing. The benefit of equity financing to a business is that the money received doesn’t have to be repaid. If the company fails, the funds raised aren’t returned to shareholders.
Detailed explanation-3: -Equity investors purchase shares of a company with the expectation that they’ll rise in value in the form of capital gains, and/or generate capital dividends.
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